Ecora Resources getting no credit for significant growth potential, says broker
Published: 15:02 29 Jan 2025 GMT
Ecora Resources PLC (LSE:ECOR, TSX:ECOR, OTCQX:ECRAF) reported portfolio income of US$63 million for 2024 was slightly higher than market estimates, says broker Peel Hunt.
Management highlighted that the contingent consideration of US$5m from Narrabri has started to be received, with US$3m reaching Ecora's bank accounts in January, significantly sooner than we had expected.
At the margin, this should help accelerate the pay-down of net debt through this year.
Looking forward, in addition to good production at Mantos Blancos and Voisey's Bay, the Capstone team is not only progressing the Santo Domingo project to an investment decision in 2026 but is also reviewing a potential low-cost expansion of Mantos Blancos via tailings retreatment.
Peel Hunt adds that the shares trade at production-only valuation, ascribing no value to any of the significant growth projects Ecora has in its portfolio.
The shares 0.4 times book value, highlighting their large potential as confidence grows in the growth portfolio.
Buy with a 135p target is the investment view.
Shares today were up 4.7% at 62.4p.
